Champion Contractors completed the following transactions involving equipment. Year 1 Jan. Jan. 1 Paid $270,000 cash plus $10,800 in sales tax and $1,700 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four-year life and a $27,000 salvage value. Loader costs are recorded in the Equipment account. 3 Paid $5,000 to install air conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $1,500. Dec. 31 Recorded annual straight-line depreciation on the loader. Year 2 Jan. 1 Paid $4,600 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. Feb. 17 Paid $1,150 for minor repairs to the loader after the operator backed it into a tree. Dec. 31 Recorded annual straight-line depreciation on the loader. Required: Prepare journal entries to record these transactions and events. No 1 Date Jan 1, Year 1 Equipment Cash 2 Jan 3, Year 1 Equipment Cash Answer is complete but not entirely correct. General Journal Debit Credit 282,500 282,500 5,000 5,000 3 Dec 31, Year 1 Depreciation expense-Equipment 64,625 Accumulated depreciation-Equipment 64,625 X 4 Jan 1, Year 2 Equipment Cash 5 Feb 17, Year 2 Repairs expense-Equipment Cash 6 Dec 31, Year 2 Depreciation expense-Equipment Accumulated depreciation-Equipment >> 4,600 4,600 1,150 1,150 33,079 33,079